Adventure Club: Streaming-Driven EDM

This offering features public performance earnings generated by a catalog of songs from the popular EDM duo Adventure Club

$43,600

closing price

Auction Closed

Top Bid: Veerraju K

The Theoretical IRR is a formulaic guideline based on an extrapolation of the normalized, historical earnings trend of the catalog. The Theoretical IRR is not a guarantee of future performance. It should be used for comparison purposes only. Each catalog has its own risk factors and the Theoretical IRR is not based upon a specific analysis of this catalog. Click here to view the basis for all Theoretical IRR calculations.

Historic royalty income is no indication of future royalty income. Future royalty income is dependent upon future sales and licensing revenue generated by the sound recordings or compositions associated with this listing.

Starting Price: $30,000
Bidding Increment: $800
Closing Price: $43,600
End Date: Oct 29, 2019, 3:25 PM MDT
Dollar Age:

4.58 Years

Last 12 Months' Royalties: $7,838
Investment Term: Life of author + 70 years
Distributors: BMI
Rights Included:

Public Performance

Interests Included:

Songwriter (World)

Track List:

Track List

First Distribution: January 17, 2020
Distribution Frequency: Quarterly
Buyer Fees:

$500

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What rights are included?

  Musical Composition Sound Recording
Copyrights included? No
Rights:
Mechanical
Public Performance
Sync
Sales
Non-Interactive Streaming
Sync
Sources: Internet Streaming, AM/FM & Satellite Radio, TV/Film/Commercial Performances, etc. Internet Streaming, Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, Samples, etc.
Distributors: BMI

Description

Place a bid on these songwriter royalties produced by music from the trendsetting Canadian electronic duo, Adventure Club.

The income for this catalog is anchored by one of the group’s oldest singles “Wonder.” Released in 2013, “Wonder” was certified Gold track by MC (Music Canada) and contributes to 25% of historic earnings. To date, "Wonder" has nearly 15 million streams on Spotify. A catalog built on a foundation of earnings from older works is worth noting as an investor.

This offering also contains some of Adventure Club’s newer releases from their debut album Red // Blue. Collectively, “Crash 2.0” and “Limitless” contribute to nearly a quarter of recent earnings, with “Limitless” growing 6% year-over-year. "Crash 2.0" is the band's most popular song on Spotify with over 20 million streams thus far. Red // Blue also features the single "Firestorm" with Sara Diamond contributing to 7% of recent income. With earnings spread across newer and mature works, this catalog has built-in diversification.

In line with the electronic genre as a whole, this collection is driven by streaming. According to BuzzAngle’s 2018 report, as a genre, 87% of EDM (electronic) listeners tune in on-demand streaming platforms. Currently, streaming accounts for 45% of last year’s revenue. This is good news for you, as the winning investor will benefit from the existing streaming foundation. The top-earning streaming platforms are Spotify, Pandora, and Apple Music, among others.

Key Drivers

Dollar Age. This collection of songs has a Dollar Age of 4.58. In this case specifically, the Dollar Age demonstrates a diverse income mix between new(er) releases and more mature works. A catalog containing mature works with consistency is something worth noting as an investor. This can help sustain a catalog's earnings moving forward.

New Release. Adventure Club just released a new two-track album The Death Or Glory Sessions on October 18th, 2019. While the new songs are not included in this auction, new releases can help boost an artist's back catalog. The release of new music draws discovery among first-time listeners and re-engages existing fans.

Diversity in Song Income Mix. Revenues are somewhat distributed — the single highest-earning song only accounts for 25% of last year’s income. This means the catalog’s earnings are not tied to the success of a single track and provides built-in diversification for you as an investor.

EDM Genre. According to 2018 IMS Business Report, the EDM (electronic dance music) industry is currently valued at $7.4 billion, estimating that the global EDM industry could be worth nearly $9 billion by 2021. In fact, EDM as a genre is beginning to blend into mainstream culture, with crossover hits appearing in both pop and R&B categories. As the once-underground genre becomes deeper embedded in mainstream culture, crossover tracks bridge the gap between genres.

About the Royalty Distributor

Broadcast Music, Inc. (BMI) is one of four United States performing rights organizations, along with ASCAP, SESAC & Global Music Rights. It collects license fees from music users on behalf of songwriters, composers, and music publishers and distributes them as royalties to those members whose works have been performed. For more information on BMI’s distribution schedule, click here.

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